Personal Balance Sheet

With information at the tips of our fingertips, we can shop for goods even at the comfort of our home. We can also check out the latest product launch on the internet. Shopping has never been so easy and more people are spending more money as the economy is set to be moving up at a stable rate.

As the economy is growing at a healthy rate, we must also update our balance sheet. Personal balance sheet is a must for everyone who has an income. With personal balance sheet, one can be aware of their net worth. Net worth is derived from the total asset minus total liabilities. The perfect time to improve our financial status is during healthy economy.

As a financial planner, calculating a balance sheet is a simple task as it is a daily routine for me. If you do not have a balance sheet, I strongly encourage you have one done. Alternatively, you can contact any financial planners in your country and they can help you with computing your balance sheet.

Balance sheet comes in a standard form. Assets are usually on the right side, liabilities on the left and from there, you can calculate your net worth. You can find out a lot of useful information after doing up your balance sheet.

Here are some of the information that you can find out;

1. Liquidity Ratio


2. Liquid-Asset-to-Net-Worth Ratio


3. Savings Ratio


4. Debt-to-Asset Ratio


5. Total Investment Asset to Net Worth Ratio


6. Solvency Ratio

I will briefly explain more on the different types of ratios in my next few post. Do give comments if you have any queries. I will be more than happy to help.